Lantern Hill Inc.

“As of january 1, 2014, lantern hill, inc. Entered into a management and marketing agreement with erickson living management, llc ("elm") for elm to provide such services on behalf of lantern hill, inc. To manage and market the community. Elm is a maryland limited liability company which operates and manages large scale continuing care retirement communities. The management agreement complies with rev. Proc. 97-13. The june 30, 2016 amendment to the management agreement included a description of certain services included within the scope of "in-house legal service." chris rathmann is listed in part vii, as a non-compensated officer of the filing organization. His duties are considered performed pro bono. Patricia swan, executive director, theresa palladino, director of finance, jerry mcdonald, associate excutive director, randy carroll, director of sales, and graham haskell, director of human resources, are leased employees from the management company. The filing organization reimburses the management company for their compensation which is reported on form 990, part vii, section a.”

“Lantern hill increased its board size from 3 to 8 directors.”

“The organization is a nonstock corporation. It has a sole member, national senior campuses, inc., which is itself tax-exempt under section 501(c)(3) and is classified as a type iii functionally integrated supporting organization under section 509(a)(3).”

“The board of directors may nominate a slate of candidates for consideration by the member, but the member has sole discretion to elect directors whether or not nominated by the board of directors.”

“Certain extraordinary actions of the corporation require the approval of the member under applicable state law. Under the organization's bylaws, certain governance decisions are made by the board with the consent of the member as shared powers and certain governance decisions are reserved to the member. Shared powers include amendments to any of the community documents (except where it involves a reserved power), approval of all contracts with or payments to the member or other related entities (other than governance costs of the member), authorizing the filing of any bankruptcy, changes to shared powers, a significant expansion or new line of business just involving the organization, and selection of the management company. Reserved powers of the member include: approval of policies affecting more than one community; sponsorship of a new community; payment of reasonable amounts to cover the member's operating costs; the execution of joint purchase contracts or similar agreements along with affiliate(s); the disposition or pledge of all or substantially all of the organization's assets (other than a pledge in connection with an asset or financing transaction); compensation of officers, directors and advisory committee members; and approval of contracts, amendments, etc. Affecting the organization and one or more related entities or the residents of their communities.”

“The board appoints a committee from among its directors as well as the directors from one or more related entities to oversee the preparation of form 990. The board chair has the responsibility to review form 990 prior to its filing or to designate another board member to review the form. The full board is given the opportunity to review the final version of form 990 before it is filed and ask questions of the committee or the reviewer regarding the form. The board chair designates an officer to sign form 990.”

“Lantern hill inc.'s conflict of interest policy covers all directors and officers. Each covered person completes a conflict of interest disclosure statement annually and as potential conflicts arise during the year. These statements are reviewed by the board chair. If a conflict arises, the board of directors or a committee of disinterested directors will determine whether a conflict actually exists. A covered person may not participate in any discussion or debate by the board but may answer questions or provide clarifying information unless any board member objects.”

“Nsc has approved a directors' compensation policy which establishes the process by which all director compensation is determined. Officers serve without compensation. A review of the directors' compensation is conducted each fiscal year. Compensation is approached on an overall basis and the total value of all forms of compensation is established and monitored. An independent compensation consultant is periodically retained to perform an analysis of lantern hill, inc.'s compensation using comparables of both for-profit and non-profit peers. A committee of the nsc board reviews the consultant's report and makes a recommendation to nsc as to appropriate compensation of directors. The full board has access to lantern hill, inc.'s consultant's report and an opportunity to question the consultant about the process, metrics, and comparables that were used in determining the recommended compensation. Nsc then votes on the compensation recommendations and a contemporaneous record is made of the meeting and the vote. The consultant review was last undertaken in 2014 and was acted upon by the board in early 2015.”

“The governing documents, conflict of interest policy, and the financial statements are available upon request at the executive director's office for the same period of disclosure as set forth in section 6104(d).”

“On january 1, 2014 lhn and redwook-erc new providence, llc ("npc") entered into a working capital loan agreement ("wcla"), which allows lhn to borrow from npc. On november 1, 2016, the agreement was amended to increase the aggregate principal amount to $14,000,000. As of december 31, 2016 and 2015 the balance on the wcla was $7,888,100 and $0, respectively.”